UBS Asset Management’s wholly-owned China unit has launched an onshore equity private fund series.
The UBS (CN) China Equity Private Fund Series two, three and seven is distributed through domestic brokerage and wealth management firms CITIC Securities and China Wealth Management, the Swiss asset manager says in a statement on February 18.
According to UBS, its equity team “holds a long-term bullish view about China’s economic growth, and adheres to a value-investing philosophy in pursuit of long-term returns based on fundamentals and profit growth”.
“There are lots of opportunities in China’s equity market, where many high-quality companies have attractive valuations. New economy industries including consumer, healthcare and information technology, are beneficiaries of China’s economic restructuring,” Bin Shi, the company’s head of China equities, says in the statement.
UBS’s China unit, UBS Shanghai, is one of the first wholly foreign-owned enterprises, or WFOE, in the Mainland.
The designation allows foreign companies to apply for a private fund management licence from the Asset Management Association of China, and sell private funds to domestic investors, including wealthy individuals and family offices.
UBS Shanghai has launched 13 private fund products, including the UBS (CN) China Equity Private Fund Series one, since receiving the licence in 2017.
There were 22 WFOEs offering 50 private funds in total as of end-2019. Beijing introduced the programme in 2016.
Zurich-based UBS Asset Management had US$903 billion of total assets as of December 2019.
